Rating firm ICRA has downgraded the long term rating assigned to Rs 5,000 crore non-convertible debenture and Rs 28,116 crore long-term fund based/non-fund based limits of Reliance Communications from 'LAA+' to 'LAA'.
The long term rating continues to remain under watch with negative implications. This apart, ICRA also has an outstanding rating of A1+ against the Rs 7,314 crore short-term fund-based/non-fund basedlimits and Rs 2,000 crore commercial paper of RCom.
"The rating action takes into consideration the delay in the proposed equity infusion and continuing regulatory uncertainties, which in ICRA’s opinion, may impact the company’s ability to deleverage its balance sheet," ICRA said.
The company’s management has maintained that the equity raising plans are in progress and any such infusion would be used to deleverage the company.
